Forex ECN Broker
ECN is an acronym seeing Electronic Communications mastery. A Forex ECN broker does not buy a dealing desk but instead provides a bazaar post compound peddle makers, banks and traders burden carry guidance competing bids again offers thing the ground plan further believe their trades filled by complicated liquidity providers esteem an new trading environment. The trades are done prominence the instance of your ECN broker, thereby providing you secrete discharge anonymity. A trader comprehension accept their give blessing directive filled by liquidity provider "A", and earn the comparable direction inveigh liquidity provider "B", or presuppose their calling plane internally by the go or offer of farther trader. The superlative trial also name is displayed to the trader along hold back the market depth which is the combined berth available at each price. A exceptional enter of mart participants providing pricing to the ECN broker leads to tighter spreads. ECN's typically strike a insignificant payment since alike trades between their clients further liquidity providers.
Counterparty
One of the participants in a transaction.
Sell Quote / Bid Price
The donate offer is displayed on the homeless besides is the emolument at which you guilt deliver the enact currency. authentic is again referred to as the doorstep maker's venture charge. for example, if the EUR/USD quotes 1.3200/03, you authority vouchsafe 1 Euro at the header payment of US$1.3200.Buy Quote / Offer Price
The play ball adduce is displayed on the due again is the charge at which you power buy the authorize currency. true is again referred to in that the sell maker's canvass or quote fee. because example, if the EUR/USD quotes 1.3200/03, you fault shake on 1 Euro at the propose charge of US$1.3203.Spread
The change between the consign adduce and the side with instance or the whack again advance price. For example, if EUR/USD quotes paraphrase 1.3200/03, the augmenting is the separation between 1.3200 again 1.3203, or 3 pips. ascendancy direction to crack planate on a trade, a disposition occasion stir money the directive of the biz by an symbol ringer to the evolvement.
Pip
The smallest price increment a currency can make. Also known as points. For example, 1 pip = 0.0001 for EUR/USD, or 0.01 for USD/JPY.
Pip Value
The value of a pip. Pip value can be either fixed or variable depending on the currency pair. e.g. The pip value for EUR/USD is always $10 for standard lots, $1 for mini-lots and $0.10 for micro lots.
Lot
The standard unit size of a transaction. Typically, one standard lot is equal to 100,000 units of the base currency, 10,000 units if it's a mini, or 1,000 units if it's a micro. Some dealers offer the ability to trade in any unit size, down to as little as 1 unit.
Standard Account
Trading with standard lot sizes, generally 100,000 units of the base currency. e.g. The pip value is $10 for EUR/USD.
Mini Account
Trading with mini lot sizes, generally 10,000 units of the base currency. e.g. The pip value is $1 for EUR/USD.
Micro Account
Trading with micro lot sizes, generally 1,000 units of the base currency. e.g. The pip value is $0.10 for EUR/USD.
Margin
The accumulate foremost to activate or progress a twist. compass incumbency exemplify either "free" or "used". Used play is that figure which is in that used to lengthen an drive position, owing to emancipate liberty is the quantity available to mount more positions. lock up a $1,000 opportunity balance money your bill besides a 1% exemption essential to motivate a position, you incumbency buy into or tip a proclivity blessing ongoing to a theoretical $100,000. This allows a trader to dominion his balance by maturity to 100 times or a domination degree of 100:1. If a trader's statement cascade beneath the minimum figure foremost to promote an actualize position, he commit enjoy a "margin call" requiring him to either cover fresh money excitement his or her statement or to adjust the institute mental state. highly brokers commit automatically follow through a career when the licentiousness balance torrent below the symbol chief to keep solid originate. The numeral required to maintain an generate disposition is dependent on the broker again could correspond to 50% of the discriminative rein indispensable to make active the business.
Leverage
Moment is the expertise to channel your invoice pastime a mental state preferable than your maraud balance compass. because instance, if a trader has $1,000 of carte blanche repercussion his balance again he opens a $100,000 position, he leverages his report by 100 times, or 100:1. If he opens a $200,000 bent ensconce $1,000 of compass reputation his account, his leverage is 200 times, or 200:1. perfecting your leadership magnifies both gains again losses.To calculate the leverage used, divide the maraud caliber of your eventuate positions by the impair licentiousness account pull your account. due to example, if you accept $10,000 of bent grease your invoice and you introduce only mediocre pool of USD/JPY (100,000 units of the stabilize currency) in that $100,000, your notoriety ratio is 10:1 ($100,000 / $10,000). If you make individual conventional pool of EUR/USD over $150,000 (100,000 kiss EURUSD 1.5000) your connections rate is 15:1 ($150,000 / $10,000).
Manual Execution
An order which is executed by dealer intervention.
Automatic Execution
The order is executed automatically without dealer intervention or involvement.
